Question

Troyer’s long-term available-for-sale portfolio at December 31, 2014, consists of the following.
Troyer enters into the following long-term investment transactions during year 2015.
Jan. 13 Sold 2,125 shares of Company S stock for $72,250 less a brokerage fee of $1,195.
Mar. 24 Purchased 15,500 shares of Company U common stock for $282,875 plus a brokerage fee of $1,980. The shares represent a 62% ownership interest in Company U.
Apr. 5 Purchased 42,500 shares of Company V common stock for $133,875 plus a brokerage fee of $1,125. The shares represent a 10% ownership in Company V.
Sept. 2 Sold 11,000 shares of Company T common stock for $156,750 less a brokerage fee of $2,700.
Sept. 27 Purchased 2,500 shares of Company W common stock for $50,500 plus a brokerage fee of $1,050. The shares represent a 25% ownership interest in Company W.
Oct. 30 Purchased 5,000 shares of Company X common stock for $48,750 plus a brokerage fee of $1,170. The shares represent a 13% ownership interest in Company X.
The fair values of its investments at December 31, 2015, are: R, $568,125; S, $210,375; U, $272,800; V, $134,938; W, $54,689; and X, $45,625.
Required
1. Determine the amount Troyer should report on its December 31, 2015, balance sheet for its long-term investments in available-for-sale securities.
2. Prepare any necessary December 31, 2015, adjusting entry to record the fair value adjustment of the long-term investments in available-for-sale securities.
3. What amount of gains or losses on transactions relating to long-term investments in available-for-sale securities should Troyer report on its December 31, 2015, income statement?


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  • CreatedApril 23, 2015
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